Bank of England may slow interest rate

The Bank of England may slow the rate of interest rates because of a slowdown in the inflation rate, which charts the rising cost of living. That would slow down the returns for savers.

The changes will mean that there are 59 prizes of 100,000 available next month, up from 56 in January. There will be 12,573 prizes of 1,000 prizes next month, up from 11,968 in January.

The odds of each 1 bond winning a prize will remain the same at 24,000 to one, because there will be fewer prizes of 25 available.

While some savers might be lucky enough to hit the 1 m jackpot or win big early on, others may save and wait for long periods for even a small return, said Myron Jobson, personal finance analyst at Interactive Investor.

Savers have been offered much better rates than they have for years but the buying power of their pot of money has been diluted by rising prices in the shops.

Anna Bowes, a comparison website Savings Champion, said that the UK was possibly reaching the peak of the interest rate cycle, although some variable easy-access accounts might still raise returns, but overall activity among providers was likely to slow.

She pointed out that Bank of England figures showed there were 268 billion in accounts that didn't pay interest, so it was still advisable for people to shop around to get better returns for spare cash, especially as prices were still going up.

A third of people who borrowed money to help get through Christmas and the holiday season said they were not confident in their ability to repay, according to a recent survey by BBC News.